Chatham University

“The university's collections include paintings, prints, photographs, sculptures, drawings and watercolors, and decorative arts. These items are held for educational, research, scientific and curatorial purposes. Each of the items is cataloged, preserved and cared for, and activities verifying their existence and assessing their condition are performed continuously. Purchases of collection items are recorded as operating expenditures in the year in which the items are acquired. Contributed collection items are not reflected in the financial statements.”

“The university's collections include paintings, prints, photographs, sculptures, drawings and watercolors and decorative arts. These items are held for educational, research, scientific and curatorial purposes. Each of the items is cataloged, preserved and cared for, and activities verifying their existence and assessing their condition are performed continuously. Purchases of collection items are recorded as operating expenditures in the year in which the items are acquired. Contributed collection items are not reflected in the financial statements.”

“The university's endowment consists of various investment funds established primarily for the support of its mission. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. The board of trustees has elected to be governed by the commonwealth of pennsylvania's act 141 (act 141). Act 141 permits election of a total return policy that allows a nonprofit to choose to treat a percentage of the average market value of the endowment's permanently restricted investments as income each year. However, the long-term preservation of the real value of the assets must be taken into consideration when the board elects the amount. On an annual basis, the board of trustees must elect, in writing, a spending rate of between 2% and 7%. For the year ended june 30, 2014, the university utilized a 7.0% spending rate, based on a three-year average of historical endowment market values. The last fiscal year used to determine the transfer for the fiscal year ended june 30, 2014 was the fiscal year ended june 30, 2013. The university classifies as permanently restricted net assets the original value of gifts donated to the endowment and the original value of subsequent gifts to the endowment. The undistributed amounts earned are included in temporarily restricted net assets. In accordance with act 141, the university has adopted a written investment policy, of which a section specifically relates to the endowment. The university considers the following factors in making a determination to set a spending rate: 1. Protecting the corpus of the endowment fund 2. Preserving the spending power of the assets 3. Obtaining maximum investment return with reasonable risk and operational consideration 4. Complying with applicable laws”

“The university is exempt from federal income taxes under section 501(c)(3) of the irc and has further been determined to be a nonprivate foundation under sections 509(a)(1) and 170(b)(1)(a)(ii) of the irc. Accordingly, no provision for taxes has been made in the accompanying consolidated financial statements. The university is also exempt from state income tax under applicable state statutes. Chatham investments llc has been organized as an llc, which is not subject to federal or state income taxes. However, the taxable income or loss from the renewable energy management activities of chatham investments llc is included in the income tax return of the university. Accordingly, any income from chatham investments llc that is unrelated to the exempt purposes of the university is treated as unrelated business income on the university's tax return. The university follows the codification topic on income taxes. The topic prescribes a minimum recognition threshold and measurement methodology that a tax position taken or expected to be taken in a tax return is required to meet before being recognized in consolidated financial statements. The university's consolidated statements of financial position at june 30, 2014 and 2013 do not include any liabilities associated with uncertain tax positions; further, the university has no unrecognized tax benefits. The university is no longer subject to examination of its tax returns for years before 2011.”

“Rental expenses 3,702,879.”

“Student scholarships/financial aid 8,847,666.”

“Rental expenses 3,702,879.”

“Student scholarships/financial aid 8,847,666.”

“The beginning of year net asset balance was adjusted due to the financial statement endowment changing from accrual basis to cash basis.”